CUET Economics Syllabus 2026: Important Chapters, Questions & Books; PDF Download

Unit 1: Introduction

• What is microeconomics?
• Central problems of an economy, production possibility curve and opportunity cost

Unit 2: Consumer Behaviour and Demand

• Consumer’s Equilibrium: meaning and attainment of equilibrium through Utility Approach: One and two commodity cases.
• Demand: market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in demand curve, price elasticity of demand, measurement of price elasticity of demand – percentage, total expenditure and geometric methods

• Production function: returns to factor and returns to scale
• Supply: market supply, determinants of supply, supply schedule, supply curve movement along and shifts in supply curve, price elasticity of supply, measurement of price elasticity of supply – percentage and geometric methods
• Cost and Revenue: Concepts of costs; short-run cost curves (fixed and variable costs; total, average and marginal costs); concepts of revenue – total, average and marginal revenue and their relationship. Producer’s equilibrium – with the help of MC and MR.

• Forms of market – perfect competition
• Price determination under perfect competition – equilibrium price, effects of shifts in demand and supply.

Unit 1: National Income and Related Aggregates — Basic Concepts and Measurement

• Macroeconomics: meaning.
• Circular flow of income, concepts of GDP, GNP, NDP, NNP (at market price and factor cost), National Disposable Income (gross and net); Private Income, Personal Income and Personal Disposable Income
• Measurement of National Income –Value Added method, Income method, and Expenditure method.

Unit 2: Determination of Income and Employment

• Aggregate demand, aggregate supply, and their components
• Propensity to consume and propensity to save (average and marginal)
• Meaning of involuntary unemployment and full employment
• Determination of income and employment: two-sector model
• Concept of investment multiplier and its working
• Problems of excess and deficient demand
• Measures to correct excess and deficient demand – availability of credit, change in government spending

Unit 3: Money and Banking

• Money: meaning, evolution, and functions
• Central bank: meaning and functions
• Commercial banks: meaning and functions
• Recent significant reforms and issues in Indian Banking System: privatisation and modernization

Unit 4: Government Budget and the Economy

• Government budget – meaning and its components
• Objectives of government budget
• Classification of receipts – revenue and capital; classification of expenditure – revenue and capital, plan and non-plan, and developmental and non-developmental
• Balanced budget, surplus budget, and deficit budget: meaning and implications
• Revenue deficit, fiscal deficit, and primary deficit: meaning and implications; measures to contain different deficits.
• Downsizing the role of government: meaning and implications

Unit 5: Balance of Payments

• Foreign exchange rate – meaning (fixed and flexible), merits and demerits; determination through demand and supply
• Balance of payments accounts – meaning and components
• A brief analysis about recent exchange rate issues